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ENERGY Development Corp. (EDC), a former unit of
state-owned Philippine National Oil Co. (PNOC), is planning to put
up several subsidiaries for its planned expansion.
Paul A. Aquino, EDC president,
told stockholders that EDC will create subsidiaries and special
purpose vehicles (SPV) for government-owned power plants it manages
to acquire. The SPVs would also be formed for the company’s
venture in Indonesia.
Aquino said that EDC’s proposed
units would allow it to limit its liabilities and give it the
financial flexibility for its expansion, which is anchored on
acquisitions, raising its capacity to 280 to 310 megawatts, and
foreign ventures.
“These moves would be
beneficial to the company as this will allow the mother company to
limit its liabilities and at the same time allow it to get partners
to share any possible risk,” he said.
The company is eyeing three
possible projects in Indonesia, whose vast geothermal energy
potential at about 20,000 megawatts has yet to be fully developed.
Aquino said that for these
particular projects, EDC is keen on tapping “possibly a
government-run company.”
He said earlier that although
talks have yet to be firmed up, EDC expects to complete the deals
before the year ends.
EDC is likewise eyeing
government’s geothermal power plants up for sale, namely the
Tiwi-Makban, Tongonan and Palinpinon, which are set to be auctioned
off in June, September and December, respectively.
EDC, formerly PNOC-EDC, is
the country’s largest geothermal energy producer and provider of
onshore drilling services.
The Lopez group, through First
Gen Corp., acquired majority control of EDC for P58.5 billion after
the government divested its 60 percent shareholdings in an auction
last year.
EDC’s shares at the Philippine
Stock Exchange closed lower Wednesday at P5.2 from P5.3 previously.
--Euan Paulo C. Añonuevo
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